Fiji is grappling with significant demographic and labor market challenges, as detailed in the recent World Bank Fiji Country Economic Memorandum. This report highlights a notable slowdown in the country’s population growth and low labor force participation, particularly among women, which could hamper long-term economic progress.
According to the memorandum, Fiji’s population growth has plummeted from 0.7 percent from 1991 to 2012 to a mere 0.09 percent between 2013 and 2019, with predictions suggesting further declines. Fertility rates have decreased from 3.4 to 2.5 births per woman, while outward migration continues to be high. The report notes that net migration is expected to remain negative until 2050, compounding the issues stemming from an aging population. Fiji’s working-age population is witnessing stagnation, contrasted by a rising elderly demographic growing annually by 2.8 percent, signifying a pressing demographic shift.
The labor force participation rate has also seen a decline, dropping from 60.9 percent in 1991 to 59.1 percent in 2021. This decline results mainly from decreasing male participation, while female involvement has plateaued. As noted, women’s labor force participation languishes at around 40 percent, ranking among the lowest in the region. This gap not only restricts economic growth but also leads to a misallocation of potential talent within the workforce.
To counteract these demographic shifts, the World Bank advocates for increasing women’s participation in the labor market and addressing existing skills gaps. Such initiatives could mitigate the impacts of aging demographics and reaffirm Fiji’s long-term economic viability.
Similar articles have echoed these sentiments, emphasizing the challenges posed by stagnant population growth and low workforce engagement. Reports show that although outward migration rates have decreased in recent years due to tightened immigration policies in key destination countries, there remains cautious optimism that Fiji could see a return to net population growth by around 2026. The return of students after studies abroad and the persistent use of employment schemes may bolster the workforce, enhancing economic activity and domestic consumption.
This interconnected landscape of migration patterns and labor market dynamics offers possible avenues for strengthening Fiji’s economic foundation. Although immediate challenges are present, strategic interventions aimed at increasing female labor participation, improving skills training, and stabilizing migration may cultivate a more robust and resilient economy moving forward. These steps represent crucial opportunities for enhancing Fiji’s economic future amidst the uncertainties of a shifting global landscape.
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